Paramount Skydance Posts $73B Net Income in First Report After Deal

Paramount Skydance reported net income of $73 billion on revenue of about $7 billion in its first quarterly earnings release since completing its $81-billion acquisition of Warner Bros. Discovery on October 6, according to Deadline.

Paramount+ revenue grew 21%, the platform's fastest quarterly growth this year, with average revenue per user up roughly 14%. Studios revenue rose 23% to $1.5 billion on profit of $129 million, while TV Media revenue declined 7% to $3 billion, with advertising down 8% and affiliate revenue down 5% year-over-year.

Streaming bundle and film slate

Skydance plans to launch a bundled offering of HBO Max and Paramount+ in early 2027. It is targeting at least $6 billion in synergies within three years and a net leverage ratio of 3.0x by the end of 2029.

On the film side, Skydance said Paramount Pictures is expected to double its output in 2026 with 15 releases, and it has committed to releasing 30 films annually, rising to 32 over a five-year settlement period with State Attorneys General. Co-CEOs David Ellison and Ynon Kreiz said they expect the Warner Bros. film slate in the fourth quarter to underperform.

Skydance closed the Warner Bros. Discovery deal on October 6, 2026, after State Attorneys General had sued to block the merger and a settlement was reached. Third-quarter releases included PAW Patrol: The Dino Movie, which grossed more than $160 million worldwide, and David Ayer's Heart of the Beast, starring Brad Pitt, which has taken in more than $180 million globally. The Cat in the Hat opened in theaters the Friday before the earnings report.